Tax and Social Security

Britain's poorest households pay a greater proportion of their income in taxes than the richest, according to new data from the Office for National Statistics (ONS). Analysis of the ONS' Effects of Taxes and Benefits publication, released today, found:

While the UK's benefits system is progressive, our tax system places a disproportionately heavy burden on the poorest when compared to the richest, exacerbating the UK's already extreme levels of inequality.

Tax has long been an important area of public and political debate in the UK. Who pays what, who avoids tax, and whether tax is ‘fair’ are questions that are regularly tackled in our press and in Parliament. But much of this debate is based upon a reductive and misleading account of tax.

The Equality Trust's report, Course Correction: The Pre-Distributive Case for the 50p Top Income Tax Rate, explores the relationship between top personal income tax rates, economic growth, and economic inequality. It aims to identify whether, and how, top income tax rates are related to economic